Saturday, October 22, 2005

Top 20 Market Cap Companies Trading Below Net Current Asset Value

A few weeks back, your Cheap Stocks editor stated that he was having trouble identifying any compelling companies trading below NCAV. While that sentiment has not changed radically, this weeks report will identify a list of companies currently trading below their NCAV. Keep in mind that, unless stated, no judgements are being made on these companies. Many NCAV companies bear that distinction with good reason: they may be near death. You may notice one familiar name on this list, Discovery Partners (DPII), which we reported on several months back. That stock is down about 15 percent since that report.

Company(Ticker), Mkt Cap, NCAVUTSTarcom(UTSI), 646.5, 677.9

Audiovoxx(VOXX), 305.8, 341.2

InFocus(INFS), 130.3, 183.6

Discovery Partners(DPII), 74.7, 86.9

Lazare Kaplan(LKI), 71.7, 81.2

Corgentech(CGTK), 70.3, 86.1

Axonyx(AXYX), 56.3, 62.1

Network Engines(NENG), 50.6, 51.1

Pharmos Corp(PARS), 37.7, 49.2

Concord Camera(LENS), 34.1, 58.4

Remec Inc(REMC), 32.7, 121.2

IntraBiotics Pharmaceuticals(IBPI), 31.9, 48.3

Adams Golf(ADGO), 31.1, 31.4

First Aviation Services(FAVS), 30.1, 32.5

Strategic Distribution(STRD), 29.6, 42.3

Coast Distribution System(CRV), 27.1, 27.8

Sport Chalet Inc(SPCHB), 23, 29.2

Cadus Corp(KDUS), 21.3, 24.4

Enesco Group(ENC), 19.6, 37.5

Catalytica Energy Systems(CESI), 19.5, 22.2

There you have it. A lot of very small names on this list. One of the more interesting ones is electronics manufacturer Audiovoxx, which was trading below its NCAV 3 years ago, and was referenced in a story I published then. At the time, VOXX was trading around $4 a share, and subsequently had a very nice run up, knocking it off the NCAV list. Now, its back on the list, at a much higher price ($13 range).

As always, be very cautious with these companies. Many of them may be here for good reason.

*The author does not have a position in any of the stocks mentioned in this report. This is neither a recommendation to buy or sell this security. All information provided believed to be reliable and presented for information purposes only.